Gift and Souvenir Stores
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 13,700 gift and souvenir retailers in the US sell gifts, novelties, souvenirs, and related merchandise. Major product categories include souvenirs, novelty items, kitchenware and home furnishings, clothing and jewelry, seasonal decorations, greeting cards, and toys. Companies may specialize in a particular category, such as Christmas merchandise, Halloween costumes, or party supplies. The industry includes national and regional chains, franchises, and independent operators.
Seasonal Sales
Gift giving is seasonal, and peaks during gift-related holidays, such as Christmas, Valentine’s Day, and Mother’s Day.
Vulnerable To Economic Conditions
Gifts, souvenirs, and novelty items are discretionary purchases, and demand typically drops during economic downturns.
Industry size & Structure
The average gift and souvenir store operates out of a single location, employs about nine workers, and generates about $1.4 million annually.
- The gift and souvenir retail industry consists of about 13,700 companies that employ about 136,300 workers and generate about $19 billion annually.
- The industry includes national and regional chains, franchises, and independent operators.
- The industry is fragmented; the top 50 firms account for 47% of industry sales.
- Large companies include Party City Holdings, Harry & David (a subsidiary of 1-800-FLOWERS.COM), and Spencer Gifts (which also owns Spirit Halloween). Most Hallmark stores are independently owned.
Industry Forecast
Gift and Souvenir Stores Industry Growth
Recent Developments
Nov 11, 2024 - Retail Sector Expands, Inflation Flat
- Economic activity in the services sector including the retail sector expanded in October 2024, according to the Services ISM Report on Business. The Services PMI registered 56% in October, up 1.1 percentage points from September, marking the fourth consecutive month of expansion. Of the 14 of the 18 services industries reporting growth in October, Retail Trade reported the fastest growth during the period. Producer inflation for office supplies, stationery, and gift retailers were flat in September 2024 compared to a year ago, according to the US Bureau of Labor Statistics (BLS). Employment at gift, novelty, and souvenir retailers grew 5.3% in September 2024 compared to a year ago while average wages stayed flat during the same period.
- According to a report in Gifts and Decorative Accessories magazine, the estimated impact by president-elect Donald Trump’s tariff proposals could cost American consumers between $46 billion and $78 billion in spending power. A new study by the National Retail Federation (NRF) examined the impact of Trump’s proposed universal 10-20% tariff on imports from all countries and an additional tax on imports from China. The study showed the tariffs would have a “significant and detrimental impact” on the costs of a wide range of consumer products, in particular those products supplied primarily by China. US retailers would be unable to absorb the increased costs and would need to raise prices “higher than many consumers would be willing or able to pay.” According to Jonathan Gold, NRF vice president of supply chain and customs policy, “Retailers rely heavily on imported products and manufacturing components so that they can offer their customers a variety of products at affordable prices. A tariff is a tax paid by the U.S. importer, not a foreign country or the exporter. This tax ultimately comes out of consumers’ pockets through higher prices.”
- Halloween retailers are counting on higher revenues in 2024 when the holiday falls on a Thursday compared to a year ago when it fell on a Tuesday, according to Licensing International. Many consumers prefer to buy their Halloween products in the six to eight weeks leading up to the annual fall holiday. Spirit Halloween, owned by Spencer Gifts, opened its flagship store in New Jersey in August, with the rest of its locations opening by September. While warehouse stores like Costco began stocking Halloween products in late July, mass retailers like Target and Walmart will stock Halloween products in mid-September. According to the report, many retailers ordered 10-15% fewer Halloween SKUs in 2024, narrowing their focus amid a challenging consumer environment and focusing on classic horror-themed costumes. In addition to traditional horror fare, Halloween retailers are trying out costumes and accessories from YouTube, video games, anime, streaming, and social media brands. Examples include Spirit Halloween launching costumes from the YouTube series "The Amazing Digital Circus," and Jazwares' licensed costumes from Uplift Games' Roblox's title "Adopt Me." Retailers are also offering more Halloween inflatables and animatronic figures for lawn décor.
- US online retail sales are projected to grow from $1.2 trillion in 2024 to $1.8 trillion in 2029, with a CAGR of 8.4%, according to a new Forrester forecast reported in Chain Store Age. US online retail penetration is expected to reach 29% by 2029, an increase of 23% from 2024. Big retail players Amazon and Walmart are projected to continue their growth in total and online retail sales in the US, expected to account for a quarter of total retail sales and two-thirds of online retail sales by 2029. US click-and-collect sales, which include curbside pickup and “buy online and pickup in store” (BOPIS) options, became very popular during the pandemic. Click-and-collect sales are forecast to be 29% of US omnichannel retailers’ ecommerce sales by 2029. Non-durable goods categories, including cosmetics, have online growth potential as their aggregate online retail penetration is half that of durable goods categories, with growth of high single-digit or double-digits expected in the next five years. According to the Forrester report, online retail penetration for clothing, flowers, footwear, pets, and toys is forecast to exceed 50% by 2029.
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